What Is a Bank Note?

A bank note is paper currency with a marked value issued by the central bank of a nation. Bank notes are also known as paper money or bills.

Bank notes were originally a promise of payment in coins, but later evolved into a form of currency. Coins usually represent lower units of monetary value and bank notes represent higher values.

The Bank of England began issuing the first modern bank notes in 1695. These early notes were handwritten in varying amounts. Later, fixed denominations became standard. Modern bank notes are made from a cotton paper that is more resistant to wear than standard paper.